The NZ Herald of September 14th 2011 published in article on page 4 headed “House prices and sales on rise “.The content emphasised that the worth and level of homes sold over the month of August both showed increases. As has been the trend within the last 2 years, any increases outside Auckland were of an extremely modest nature, largely in the 1 – 2% region (measured over the previous year).
Houses available in Auckland, however showed much greater increases with the Real Estate Institute (REINZ) figures quoted showing median value increases of just lacking 3% in the eight month period since January. Projecting forward, this can result in an anticipated upsurge in median values of around 5% for years end 2011.
When reporting on houses available in Auckland, REINZ figures lump residences (houses) and appointment/town houses in the same category. The greatest group of sales come in the CBD apartment market which includes been deflated for a few years. Couple this with some regions of the North Shore and Eastern Suburbs where plaster town houses predominate (for this read “leaky homes”), it is a reasonable conclusion to assume that free standing houses in good locations are on the right track to go up somewhere in the order of 10% in 2011.
From the figures on our own sales board, I can say this extrapolation to 10% anticipated growth is approximately right. There’s a real shortage of houses available in Auckland when measured from the demand houses for sale chester. Our office is observing that for a great home in “Greater Ponsonby” we can expect in excess of 100 inspections over a 3 week Auction campaign and 4 or 5 bidders is fairly normal. Earlier last month (August) we saw two homes attract in excess of 200 inspections over 3 weekends and the amount of registered bidders exceeded 15 in both cases.
When I compare the amount of houses advertised available in Auckland, particularly in the principal medium of the Saturday Herald Homes supplement, it’s clear that there surely is a decline in available homes of approximately 40% over the volumes being offered 2 or 3 years back, the main difference being that these day there are approximately double the amount of buyers having sufficient confidence inside their personal circumstances to commit to purchase.
Confidence is on a gradual but solid increase.
In the NZ Herald article quoted earlier, ANZ economist Mark Smith said he was surprised by the REINZ figures. “The upsurge in sales volumes was more powerful than we’d expected. Sales are continuing to trend up with volumes up 5.4% seasonally adjusted in the 90 days to August.
With sales volumes around 24% below historical averages as a part of the housing stock, low mortgage rates being offered, and an improved labour market environment, there is considerable scope for sales to move higher,” he said.
Being an industry observer and participant, it’s clear that generally terms the long run is bright for anyone trying to transact in houses available in Auckland, and that some regions (normally clustered round the CBD) will show very positive growth over what has been a gloomy preceding 3 years.Read More